Punishment for false display of recognition.-

1[(1) If any person, company, association or firm or any other body falsely represents any tourism trade as holding a mandatory recognition under this Act, or a voluntary grade which it has not been awarded, the Prescribed Authority shall, in accordance with such procedure as may be prescribed. Impose penalties and administrative sanctions as follows:-

1. (i) For the first such offense, such person or entity shall be liable to a monetary penalty as may be prescribed.
2. (ii) For the second such offense of false representation, such person or entity shall be liable to a monetary penalty, which shall be significantly higher than that for the first offense, as may be prescribed. The Prescribed Authority may order the suspension, for a period which may extend to six months of any other trade license or No objection Certificate from local authorities held by such person or entity for the tourism trade concerned.
3. (iii) For the third or any subsequent such offense of false representation, such person or entity shall be liable to a monetary penalty, which shall be significantly higher than that for the second offense, as may be prescribed in the rules. In addition, the Prescribed Authority shall order the cancellation or termination of any other trade license or No objection Certificate from local authorities held by such person or entity for the tourism trade concerned. Provided that, no such monetary penalty ог administrative sanction shall be imposed without giving the person or entity concerned a reasonable opportunity of being heard. the criteria for

determining repeat offences and the appellate mechanism shall be such as may be prescribed.]

2[(2) XXX]

¹ Substituted by Act 61 of 2025 w.e.f. ...................

² Omitted by Act 61 of 2025 w.e.f. ...................